All Forum Posts by: Mathieu Roegiers

Hi all, I'm looking for a good CPA in New York that does not charge me fortunes. Currently my CPA charges me 1000 USD for 1 LLC with 1 condo in it, which eats at my positive cash flow. The accounting is really basic for 1 LLC and 1 unit...

I have a second LLC with also 1 condo in it, so my CPA is asking for 2000 USD for this small job.

I am already dealing with a tenant who surfs the moratorium wave and refuses to pay after all my goodwill that started even before covid. 

If any one can recommend a quality CPA that gives me obvious scaling financial benefits and charges more appropriately for the amount of work needed, please share. Thank you! 

Hi all, question has been asked many times before I'm sure, 

but what are you seeing in the market today as best rates for investment properties/commercial loans, on 75% refi? 

I own a few investment properties free and clear, and want to now pull out as much cash as possible to get ready for sales in Q1/Q2 2021. 

I got quoted 4% on 50 % LTV so far, and 6,5% on 75% LTV. (with 2% origination fee, no other hidden fees).

What is your strategy for next year? Get cash ready for sales as well, or am I thinking about this the wrong way?

Thanks

Hi Brett & Andy, thanks, good tip! For commercial rates, you mean 75-80 % I guess? 20 to 25% downpayment? Those would be amazing, but I can't find anything even near that, in NY. Would this also apply to aliens? If you have any leads where to find those, please share. I'd sign for these terms in a second. 

I think my problem is that I'm not a citizen nor resident in the US, so that's an extra challenge, and the condos I invest in are unwarrantable. 

Anyhow, it's ridiculous to have 2 apartments free and clear, so any tips on decent loans are welcome, can't wait to refinance them and buy a few more. 

I assume my lawyer, accountant and broker are correct. They have been trying for 3 months now. I'm not an expert myself in what exactly is required for an alien in tax id nrs. 

Hi all, 

I have an LLC in NY with one apartment. I have, with my brothers, created a new LLC and signed for a second apartment. We are trying to close since March, but due to covid 19, we are still waiting for the Tax ID nr of the newly created LLC. We have been told this will only be in sept/oct, and the seller is getting nervous to close. Quite frankly, so are we.

Would there be legal/tax/Financial implications in closing with the first, already established LLC (of which I am the sole owner), and, as soon as we obtain the Tax ID nr for the second LLC (sept/Oct), transfer this apartment from the existing LLC to the new one (owned by 4 brothers)?

I do not want to attract unnecessary audits, IRS problems, or any other. Fees to transfer should also not outweigh the benefit of closing sooner and getting rental income now already. 

Thanks for all your advice. 

On a separate note, which commercial rates are you guys finding on the market right now? Both apartments were purchased in cash, and we want to refinance both, and buy a few more. However the best (and only) quote so far is 7% fixed (30 yrs) and 60% LTV, which looks quite bad to me.

We are non citizens and non residents so that takes away a few options available to US residents/citizens. 

Randy, many thanks. Love the feedback! (Zero offense taken btw, I want to learn). 

1. Indeed, I always felt I put way too much cash in downpayments in general. Great as I'm not overleveraged at all, but I consume a lot of capital. For this particular one though, it was never the intent to buy all cash, it just had to happen like that as I am not a citizen/resident and we needed to move fast. It is still the plan to refinance in 6 months to a year (whenever we can lock in a great rate)  and get capital out, to redeploy. 

2. A 20% net cash on cash return : very impressive! I am a bit wary of giant returns as, from what I've seen, they tend to be in areas that do not hold very well during recessions, but I'd love to be proven wrong. (I don't want to end up with Clayton Morris style dramas...). 

3. Expenses are kept at minimum. Indeed the 700 usd is a fixed condo cost, property management is free and part of the package when purchasing. The properties run themselves once our tenants are in, and we're keeping a tight control on unnecessary expenses, trying to maximise net returns wherever we can. 

(4. The net return of 6 is a starting point, rents are inflation adjusted. I own 2, was planning to refinance to 7 units total, which means just by scaling, the net return would increase considerably (1 CPA for 7 properties iso 1 CPA for 1 property, 1 bank account for 7 iso 1 for 1, ... etc). I'd expect this to become 7 to 9% in the years to come just by scale and inflation adjusted rent). 

(5. The area has a lot of potential. I never plan on capital gains, but the location is great. (6,5 miles from Central Park in NY..). The high speed train station should be built in about 3 to 5 years, and it has been a big catalyst since the announcement.)

I do love your cash flow performance though. Seems like with a relatively low investment, you are able to pay yourself a solid monthly salary! Enough to quit my job! Feel free to connect if you wanna discuss more. 

Thanks for your input, appreciate it, although not very relevant to my own situation I believe. 

On your first point: I included that in my comparison and discount what I see written down. But the gap between a 6% return and an 11% return is quite big... People don't just embellish their numbers by 5 % 

Second point: that's one of my remarks/questions... Is the chase for better returns worth the hassle, or risk? Or can super returns be achieved with just as little head ache in great areas... ?

Third: I clearly do not have any problem with Analysis Paralysis, I'm still a very little fish, but with 6 properties on 3 continents at age 38, I don't think I'm a hesitater.. Nor do I want to or care one single bit about bragging "down at the club". 

This has nothing to do with anxiety, but yes, I think every one should rethink and question him or herself, in general. It's a natural behaviour if you want to win, to achieve. That does not mean AT ALL that I'm lying awake at night because I absolutely want to match the bragger.

But if there's that much better to be achieved, it would only bring me closer to my goal of financial independence quicker.. 

In general, what interests me more, is the nrs I achieved... Are those low, medium or good returns, how do other people see this deal, will it allow me to achieve what I want quite well or should I try to get better deals....?

Hi all. I would love some input from you seasoned RE investors. Part of my character is to question what I'm doing as much as possible. 

On many articles, YouTube videos, podcasts, forums,... I see investors talking about their numbers, and it seems to me that I'm not doing well enough. Returns of more than 10% net per year, complete cash out refinancing, and so on,... seem to happen quite often in the US, and it makes me wonder if I should continue with my "not as terrific" investment or if I should search for better numbers. 

This is what I currently invest in, and until not so long ago, thought it was pretty good: 1 bedroom apartments in a big city, about 8 miles from the city centre, where everything happens and everyone wants to be. (the area/city seems to have more tenants than apartments...)

-Purchase plus costs/Commissions etc... : 175 000 USD

Monthly nrs:

-Rental income : 1750

-Condo costs : 700

-total tax plus CPA costs: 100 

-unforeseen: 50 

Net return per month = 900 USD for a 6,17% return per year. Let's call it 6. 

Couple of positives about the property (there are 100 000 plus units with pretty much the same nrs):

- rent to section 8 tenants only, screened by us, so backed by the government. 

- inflation adjusted rent (might be a pretty good plus in the years to come). So net return py will only increase with time. 

- safe to say we purchase the apartments about 10% below market value (after our refurbishment). They typically get valued at about 195 K. 

- big catalyst for capital gains due to construction of a high speed train to the centre very close by (changes the commute to the centre from 1hr15 min to 15 min in a few years, when train station is completed).

- the whole team (lawyer, broker, builders, ...) are great, transparent, very reactive and sharp. 

My question: I own 2 without mortgage, they work, they're safe, backed by the government, reliable, etc... The plan was to refinance both somewhere this winter, or beginning of 2021, and with the amount, buy 4 to 5 more of exactly the same. 

Is this a good idea, or should I try to find better returns? It seems like better returns are often in riskier (and maybe less recession-proof) areas, I could be wrong. I feel like I can scale well in this one (I have even partnered up with my broker to bring those to my colleagues/friends), but I also am not making the monster returns I'm seeing on the forums...?

I ultimately want to live off my real estate, and quit being an (although well paid) employee... The sooner the better. 

One detail: I am not a resident/citizen of the US, I work and live about 10 000 miles away, so being heavily involved in a BRRR strategy might be a potential challenge, I wouldn't be able to follow up locally.

All your honest analyses and opinions are greatly appreciated! 

Investment Info:

Single-family residence buy & hold investment in Bronx.

Purchase price: $175,000
Cash invested: $175,000

Purchase price 165 000 USD
Costs 10 000 USD
Total 175 000 (all paid in cash, owned free and clear)
Current valuation 195 000 USD
Rental : 1650 USD // (900 USD net after all costs/taxes paid)
ROI 6,2% Net

What made you interested in investing in this type of deal?

- Steady tenancy (state of NY)
- decent return
- safety of the investment
- 8 miles from Central Park Manhattan
- Catalyst for capital gain: The build of a high speed train station connecting to Manhattan in 15 Min.
- Area becoming nicer and nicer

How did you finance this deal?

All cash. Will be looking to refinance the existing apartment owned free and clear, to buy 2 more.

Thanks gents. 30% downpayment is no problem at all, I do not want to be over leveraged anyways. However 6 to 7% is madness, a personal loan in Europe goes for about 5%, mortgages are now, in Europe, fixed at about 1,5 !! % for 20 to 30 years... In the US you can already find 3,5 % as resident/citizen, and interest rates are falling as well... There's just no way on earth I will take a 6,5% loan, that is just madness...  

I have a few options with private lenders, but ideally I want to find something in the US, otherwise I'm stuck with monthly conversion rates and expensive international wire transfers, which would take a solid bite out of my returns.